FedEx Announces 2021 Rate Hike and Deadbeat Penalty

FedEx will raise rates in January for ground and air shipments, as well as freight, it announced Monday. The carrier said rates will rise an average of 4.9%, but the changes vary across services.

On marketplaces like eBay that charge a “commission” on shipping, that means an even higher cost for sellers – and what in effect is an unannounced fee increase for the marketplace.

FedEx typically announces its annual January rate hike this time of year, while rival UPS typically publishes its annual rate hike with little fanfare in the month of November, with rates that typically take effect at the end of the year.

Among the FedEx rate changes going into effect on January 4, 2021 are the following:

• FedEx Express package and freight standard list rates will increase an average of 4.9% for U.S., U.S. export and U.S. import services.
• FedEx Ground and FedEx Home Delivery standard list rates will increase an average of 4.9%.
• FedEx SmartPost, FedEx Ground Multiweight, and FedEx International Premium rates will increase.
• Minimum rates for FedEx Express services will also increase.
• Service Guide pricing for FedEx One Rate will change.
• FedEx Retail Rates will change.

On January 18, it will also make changes to surcharges, including changing how it assesses its Additional Handling Surcharge for FedEx Express and FedEx Ground packages:

“Effective Jan. 18, 2021, a surcharge will apply to any Express and Ground package that measures greater than 105 inches in length and girth (the length and girth is length plus (two times the height) plus (two times the width)). The following will be added to the existing criteria under the Dimension heading: ‘Measures greater than 105 inches in length and girth (the length and girth is length plus (two times the height) plus (two times the width))'”

FedEx will also crack down on deadbeats – beginning in January, it will implement a new 6% late fee for US FedEx Express and FedEx Ground invoices not paid according to approved payment terms.

Be sure to review the new rates carefully, including changes to freight services.

2021 rates

2020 rates

You can find the press release announcing the changes on the FedEx website newsroom.

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.